§ Mr. JanmanTo ask the Secretary of State for Trade and Industry what process is undertaken to ensure that all new Government legislation avoids adding to the costs and reducing the economic viability of British industry.
§ Mr. RedwoodThe White Paper "Releasing Enterprise" (Cm 512, 1988) committed Departments to compile compliance cost assessments (CCAs) for every regulatory proposal that could affect business. A CCA, which is to be drawn up before decisions are taken, seeks to identify the following: the sectors affected and any additional costs (recurring and non-recurring) they will have to bear; the impact on a "typical" business in the sectors principally affected and any differential effect on small firms; and any effect on international competitiveness. To ensure that 227W estimated costs are as accurate as possible, when business is consulted about regulatory proposals, information about compliance costs is to be requested and current estimates exposed in the form of a draft CCA.